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AP textile traders call for bandh against VAT levy

Our Bureau

Hyderabad , Dec. 28

TEXTILE traders in Andhra Pradesh have called for a `textile trade bandh' on January 6, 2006 against the decision to levy VAT on all textile items.

The traders would also go on relay hunger strike on January 23, 24 and 25 through out the State.

The decision was taken at an emergency general body meeting of all top office-bearers of Cloth Merchants' Associations held here on Wednesday.

In a statement here, Mr Ammanabolu Vijay Kumar, President of the Andhra Pradesh Federation of Textile Associations, said that the traders had opposed the move to levy VAT on products such as bed sheets, pillow covers, curtains, towels, zari and blankets. These products were exempted from Sales Tax under the APGST (the pre-VAT regime) Act.

He alleged that the Government had inserted the word `made ups' in the Schedule-IV of the VAT Act. The Schedule lists those items liable for tax at the rate four per cent.

"We ready to pay VAT on readymade garments," he said.

He alleged that the officials of the Commercial Taxes Department were harassing the textile traders, bringing pressure on them to pay taxes and to submit inventory returns.

The Department was also insisting on having TIN (Taxpayer Identification Number). "The previous Government had exempted us from having the numbers," the press release said.

If the Government didn't meet their demand, the traders would meet again to discuss future course of action.

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